August 15, 2018 CITY COUNCIL MEETING 1 ______

CITY OF FERNDALE – HUMBOLDT COUNTY – U.S.A. STUDY SESSION

Location: City Hall Date: August 15, 2018 834 Main Street Time: 6:00 pm Ferndale CA 95536 Posted: August 9, 2018

1. CALL STUDY SESSION TO ORDER – Mayor 2. REVIEW AND DISCUSS – Ferndale Chamber of Commerce/Humboldt Visitors Bureau Funds 3. ADJOURN STUDY SESSION

CITY OF FERNDALE – HUMBOLDT COUNTY CALIFORNIA – U.S.A. AGENDA - REGULAR CITY COUNCIL MEETING

Location: City Hall Date: August 15, 2018 834 Main Street Time: 7:00 pm Ferndale CA 95536 Posted: August 9, 2018

We welcome you to the meeting. Members of the Public may be heard on any business item on this Agenda before or during the City Council consideration of the item. The public may also directly address the City Council on any item of interest to the public that is not on the Agenda during the public comment time; however, the City Council generally cannot take action on an item not on the agenda. A person addressing the City Council will be limited to five (5) minutes unless the Mayor of the City Council grants a longer period of time. While not required, we would appreciate it if you would identify yourself with your name and address when addressing the Council. This City endeavors to be ADA compliant. Should you require assistance with written information or access to the facility, or a hearing amplification, please call 786-4224 24 hours prior to the meeting. TO SPEAK ON ANY ISSUE, BE ACKNOWLEDGED BY THE MAYOR BEFORE PROCEEDING TO THE PODIUM, STATE YOUR NAME AND ADDRESS FOR THE RECORD (optional), AND DIRECT YOUR COMMENTS ONLY TO THE COUNCIL. 1. CALL MEETING TO ORDER – Mayor 2. PLEDGE ALLEGIANCE TO THE FLAG 3. ROLL CALL – City Clerk: Mayor Hindley; Councilman Sweeney; Councilman Brower; Councilwoman Fisk-Becker; and Councilman O’Rourke. 4. REPORT OUT OF CLOSED SESSION 5. CEREMONIAL a. Ferndale Masonic Lodge 150th Anniversary Celebration 6. MODIFICATIONS TO THE AGENDA 7. STUDY SESSION a. Ferndale Chamber/Humboldt Lodging Alliance Funds 8. PUBLIC COMMENT. (This time is for persons who wish to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Items requiring Council action not listed on this agenda may be placed on the next regular agenda for consideration, unless a finding is made by at least 2/3rds of the Council that the item came up after the agenda was posted and is of an urgent nature requiring immediate August 15, 2018 CITY COUNCIL MEETING 2 ______action. This portion of the meeting will be approximately 30 minutes’ total for all speakers, with each speaker given no more than five minutes.) 9. CONSENT CALENDAR. (All matters listed under this category are considered to be routine by the City Council and will be enacted by one motion. Unless a specific request is made by a Council Member, staff or the public, the Consent Calendar will not be read. There will be no separate discussion of these items. However, if discussion is required, that item will be removed from the Consent Calendar and considered separately under “Call Items.”) a. Approval of Minutes of the July 18, 2018 Regular City Council Meeting ...... Page 5 b. Acceptance of Checkbook Register for July 1-31, 2018 ...... Page 8 c. Resolution 2018-18 Tri-Counties Bank Loan Renewal ...... Page 12 d. Resolution 2018-19 Conflict of Interest Code ...... Page 14 10. CALL ITEMS REMOVED FROM CONSENT CALENDAR 11. PRESENTATION a. Linda Weiss, Recology, Inc – Update on Current Issues Related to Materials Recycling 12. PUBLIC HEARING 13. BUSINESS a. Update on Washington Street Drainage Project ...... Page 37 b. Schedule Study Session for Arlington Avenue Drainage, Short Term Fixes, and Moratoriums ...... Page 38 c. Update of Russ Park Trail Bridge...... Page 39 d. Update on Street & Roads Resurfacing ...... Page 40 e. Resolution 2018-20 Funding for the League of California Cities Redwood Empire Division Meeting in Eureka ...... Page 41 f. Authorize Letter of Opposition to Bureau of Cannabis Control Proposed Regulations ...... Page 47 14. CORRESPONDENCE ...... Page 53 15. COMMENTS FROM THE COUNCIL 16. REPORTS a. City Manager Report ...... Page 72 b. Commission and Committee Reports i. Design Review Minutes ...... Page 79 c. Minutes from Joint Power Authorities (JPAs) and Reports i. Humboldt County Association of Governments (June 2018) ...... Page 83 ii. Redwood Coast Energy Authority (June 2018) ...... Page 86 iii. Hazardous Material Response Authority (July 2018) ...... Page 92 17. ADJOURN

This notice is posted in compliance with Government Code §54954.2. The next Regular Meeting of the Ferndale City Council will be held on Wednesday, September 19, 2018 in the City Hall at 7:00 p.m. August 15, 2018 CITY COUNCIL MEETING 3 ______

Section 1 CALL MEETING TO ORDER

Section 2 PLEDGE ALLEGIANCE

Section 3 ROLL CALL

Section 4 CLOSED SESSION REPORT OUT

Section 5 CEREMONIAL

Section 6 MODIFICATIONS TO THE AGENDA

Section 7 STUDY SESSIONS a. Ferndale Chamber of Commerce/Humboldt Visitors Bureau Funds August 15, 2018 CITY COUNCIL MEETING 4 ______

Section 8 PUBLIC COMMENT

This time is for persons who wish to address the Council on any matter not on this agenda and over which the Council has jurisdiction.

Items requiring Council action not listed on this agenda will be placed on the next regular agenda for consideration, unless a finding is made by at least 2/3rd of the Council (three of the five members) that the item came up after the agenda was posted and is of an urgent nature requiring immediate action.

This portion of the meeting will be approximately 30 minutes total for all speakers, with each speaker given no more than five minutes. Please state your name and address for the record. (This is optional.)

Section 9 CONSENT CALENDAR

All matters listed under this category are considered to be routine by the City Council and will be enacted by one motion.

Is there anyone on the Council, Staff or the public that would like to pull an item off the Consent Agenda for scrutiny? Those items will be considered separately under “Call Items.” August 15, 2018 CITY COUNCIL MEETING 5 ______

City of Ferndale, Humboldt County, California, U.S.A. DRAFT Minutes for City Council Meeting of July 18, 2018

Mayor Don Hindley called the Regular City Council Meeting to order at 7:00 pm. Those present did the flag salute. Present were Mayor Hindley, Council Members Michael Sweeney, Doug Brower, Patrick O’Rourke and Jennifer Fisk Becker along with staff City Manager Jay Parrish, Police Chief Brett Smith, City Engineer Steve Davidson, and City Clerk Kristene Hall.

Report out of Closed Session: None

Ceremonial: Former Councilman Daniel Brown was presented with a token of the cities appreciation for his years of service on City Council, Planning Commission and Design Review Committee. All the council thanked Dan for his service.

Modifications to the Agenda: None

Report out of Study Session: None

Public Comment: Field Representative Sydney Lewis from Senator Harris’s office introduced herself and stated she would be observing the meeting to get ideas of what agenda items communities are discussing. Lewis stated she would be available after the meeting to answer any questions. Several members of the public stated there concerns regarding the current drainage issues on Arlington Street and the impacts that a new minor subdivision that was approved on 5th Street may impact it even more. Public members would like to see improvements made to the current drainage issues before any new construction is considered.

Consent Calendar: There were seven items on the Consent Calendar for approval. MOTION: to approve the consent calendar. (O’Rourke/Sweeney) Unanimous

Call Items Removed from Consent Calendar: None

Presentation: None

Public Hearing: None

Business: Approve Resolution 2018-16 Authorizing the closure of Main Street for a Parade for the Opening Day of the Humboldt County Fair: There were no comments from the public or from the council. MOTION: to approve Resolution 2018-16 authorizing the Closure of Main Street for a Parade for the Opening Day of the Humboldt County Fair. (O’Rourke/Brower) Unanimous

Update on Washington Street Drainage Project: Mayor Hindley asked City Engineer to give an update on the project. City Engineer Steve Davidson described the drainage issues in the area and explained that the issues were larger than was anticipated when the project went out for bid last year. Davidson described what the new project would entail and the council and public was provided with drawings of the proposed new project description. Davidson explained that a surveyor was looking into the proposed new project to ensure that the project would not just displace water and cause additional problems further down. Davidson added that he anticipated having these reports and cost estimates for the August council meeting. Mayor Hindley opened up public comment. Several members of the public stated their frustration with the process and how long the project was taking. Public members also asked the council to consider putting a moratorium on building until drainage issues could be addressed. Another member of the public August 15, 2018 CITY COUNCIL MEETING 6 ______

stated his concern of drainage easements not being addressed. The public members asked about a timeline. Hindley stated that if the estimates were not available by the August meeting, then a special meeting could be called, if needed, when the estimates were in. City Manager Parrish also stated that the project may need to be done in phases. Councilman Brower stated that he would like to make sure this issue was put on the August agenda, with the possibility of the drainage issues on Arlington be put on the agenda as well. Brower also stated he would like to get the information on moratoriums being placed on building and any quick fixes that might be able to be done to help. Council members discussed a study session be held regarding quick fixes, and moratoriums.

Schedule Study Session regarding funds for the Ferndale Chamber of Commerce and Humboldt Visitors Bureau: Pat Wiley, treasurer of the Ferndale Chamber of Commerce stated he would gladly make himself available to go over financial statements with the council and/or attend any study session. Wiley also added that chamber president Paul Beatie will also attend. The council scheduled the study session for 6:00pm on August 15, 2018. This will take place before the scheduled August Regular City Council Meeting. Hindley explained that this meeting will go over if any changes will be made to how and where the funds are distributed to the Chamber and Humboldt Visitors Bureau. Councilman Brower stated that when he brought this issue to the council’s attention, he was not looking at taking anything away from the chamber. Councilwoman Fisk-Becker questioned what the Humboldt Visitors Bureau does. Hindley stated that they do advertising for the county.

Approve Resolution 2018-17 Amending the 2018-19FY Budget: Mayor Hindley opened up comments from the public. A member of the public asked what the change was. Hindley stated it was adding $45,000 for UV lights for the wastewater treatment plant. Councilman Sweeney asked staff why the line item stated $46,800 instead of the $45,000. City Clerk Kristene Hall stated this was due to the line item already having $1,800 and by adding the $45,000, it would bring the total to $46,800. Councilman Brower asked if these lights were something that Redwood Coast Energy Authority (RCEA) may help purchase. Mayor Hindley explained that these lights were used to kill bacteria not just normal lighting, so RCEA would not help pay for them. Councilman Sweeney asked if this would come out of General Fund. City Manager Parrish stated that it would. Councilman O’Rourke asked what these lights may save on for future budgets. Parrish stated they are anticipating approximately 10% savings. MOTION: to approve Resolution 2018-17 Amending the 2018-19FY Budget. (O’Rourke/Sweeney) Unanimous

Consider Designating a Voting Delegate to League of California Cities Annual Meeting in Long Beach: Mayor Hindley opened up comments from the public. There were no comments. Councilman Brower stated that he believes that they should be part of this event. Brower also added that if they did not budget for this year, then it should be put into the budget for a delegate to go next year. Mayor Hindley went over the tentative schedule and added that the schedule didn’t really pertain to any committees or groups that Ferndale belongs to. Hindley added that it was a big expense. Councilman O’Rourke agreed with Brower but also added with the drainage issues and street repair issues facing the city right now, it would not be a good use of funds this year. Councilman Sweeney stated that the reimbursement stated in the cover sheet of $110. per night would not pay fully for a hotel in the long beach area. MOTION: to not send a voting delegate for the League of California Cities Annual Conference in Long Beach. (O’Rourke/Sweeney) Unanimous

Correspondence: Councilman O’Rourke questioned a letter from Recology, Inc regarding recycling pick-up. City Manager Parrish explained that there would be an increase in cost for the city as well as residents for the pick-up of solid waste. Councilman Sweeney also explained Humboldt Waste Managements role in the process as well. Councilman O’Rourke also August 15, 2018 CITY COUNCIL MEETING 7 ______

questioned a letter that was sent regarding the preservation of a mural. City Clerk Hall explained the Design Review Committee asked that a letter be sent to the owners regarding the mural that was painted on the building due to the concerns from local citizens. The letter was sent because the mural may be protected under the California Art Preservation Act. Mayor Hindley encouraged the public and council to attend a meeting regarding a proposed onshore wind generation project. Hindley stated this was a very important topic to stay knowledgeable on as it will likely be a very hot topic and area of concern.

Comment from the Council: Councilman Brower stated he had thought streets and roads was going to be an agenda item and would like to have that on the agenda for next month. Brower also added that he would like see an estimate for resurfacing Berding Street just to see what the amount will be. Brower also questioned City of Fortuna’s process and would like an overview of their process. Councilman Sweeney stated that he and Councilwoman Fisk-Becker attended a Economic Development Conference in Blue Lake. Sweeney gave an overview of the conference. Fisk-Becker also reported on the events of the conference.

Reports: No Comments

Mayor Hindley adjourned the meeting at 8:26 pm.

Respectfully submitted

Kristene Hall City Clerk August 15, 2018 CITY COUNCIL MEETING 8 ______August 15, 2018 CITY COUNCIL MEETING 9 ______August 15, 2018 CITY COUNCIL MEETING 10 ______August 15, 2018 CITY COUNCIL MEETING 11 ______

July 2018 Deposit Recap 7.10.18 7.20.18 7.24.18 7.31.18 7.31.18 TOTAL RETAIL TAX 12,526.91 12,526.91 HIGHWAY USER TAX/VEHICLE LICENSE FEES 1,256.54 3,523.87 4,780.41 BUSINESS LIC 3,955.00 2,720.00 6,675.00 ANIMAL LIC 270.00 235.00 505.00 BUILDING RENTS 100.00 600.00 700.00 PERMITS 2,118.45 403.27 2,521.72 TOT 3,023.40 20,121.31 23,144.71 HEALTH INSPECTIONS 200.00 200.00 HCAOG - RSTP - RECYCLING GRANT 5,000.00 5,000.00 PARSAC GRANT - COUNTY OF HUMBOLDT-STREETS & ROADS - SEPTIC DUMPS / SEWER REVENUE 3,978.00 240.00 4,218.00 FRANCHSE FEES 1,183.46 1,183.46 HUMBOLDT CTY - COPS - DONATIONS 20.00 20.00 POLICE SERVICES 40.50 34.75 75. 25 SMALL MISC - COUNTY OF HUMBOLDT-PROPERTY TAXES - COUNTY OF HUMBOLDT-SEWER - COUNTY OF HUMBOLDT-INTEREST INCOME - STATE - CAL TRANS - STREET SWEEP - MISC: COUNTY OF HUMBOLDT-MEASURE Z - WORKERS COMP DIVIDENDS - PARSAC 10,056.00 10,056.00 23,541.35 1,256.54 12,526.91 3,523.87 30,757.79 71,606.46 August 15, 2018 CITY COUNCIL MEETING 12 ______

Meeting Date: August 15, 2018 Agenda Item Number 9.c

Agenda Item Title: Resolution 2018-18 Authorizing the Annual Renewal of Tri Counties Bank Loan Presented By: City Manager

Type of Item: x Action Discussion Information

Action Required: No Action x Voice Vote Roll Call Vote

RECOMMENDATION:

Adopt Resolution 2018-18 Annual Renewal of Tri Counties Bank loan for FEMA Francis Creek Project Matching Funds.

DISCUSSION:

The City of Ferndale applied for a $2,436,000.00 Hazard Mitigation Grant to reduce the frequency of flooding in the City from Francis Creek from the Federal Emergency Management Agency.

This loan originated at North Valley Bank (NVB). In 2014, Tri Counties Bank acquired NVB. The loan department at Tri Counties Bank requires a new resolution each year to renew the City’s loan. If approved, Resolution 2018-18 will replace last year’s Resolution 2017-21.

FINANCIAL IMPACT:

Staff anticipates the total annual payment (line item #26315194 in the 2018-19 budget) for this loan will be $13,555. August 15, 2018 CITY COUNCIL MEETING 13 ______

RESOLUTION NO. 2018-18

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FERNDALE AUTHORIZING THE CITY TO BORROW FUNDS FROM TRICOUNTIES BANK (Replaces 2017-21)

WHEREAS, the City of Ferndale applied for a $2,436,000.00 Hazard Mitigation Grant to reduce the frequency of flooding in the City from Francis Creek from the Federal Emergency Management Agency; and

WHEREAS, the City of Ferndale was required to provide matching funds for twenty-five percent (25%) of the approved project; and

WHEREAS, the City of Ferndale found it necessary to borrow a portion of the required matching funds; and

WHEREAS, Resolution 2017-21 is replaced by this Resolution.

NOW, THEREFORE BE IT RESOLVED, That the City of Ferndale shall be authorized to borrow an amount not to exceed FIFTY ONE THOUSAND, SIX HUNDRED TEN DOLLARS AND 99/100 DOLLARS ($51,610.99) at a rate not to exceed FOUR AND ONE QUARTER PER CENT (4.25%) from TRICOUNTIES BANK with a maturity date of August 30, 2019. Payments amortized over 7 years all due and payable annually; and

BE IT FURTHER RESOLVED, That the loan (Loan Number 3000010745) is designated as a qualifying tax exempt obligation of the City of Ferndale within the meaning of Section 265(B)(3) of the Internal Revenue Code of 1986; and

BE IT FURTHER RESOLVED, That the Mayor and City Manager/City Clerk shall be authorized to sign loan documents to secure aforementioned loan.

PASSED AND ADOPTED by the City Council of the City of Ferndale on August 15, 2018 by the following vote:

Ayes: Noes: Abstain: Absent: ______Don Hindley, Mayor Attest:

______Kristene Hall, City Clerk August 15, 2018 CITY COUNCIL MEETING 14 ______

Meeting Date: August 15, 2018 Agenda Item Number 9.d

Agenda Item Title: Resolution 2018-19 Adopting a Conflict of Interest Code

Presented by: City Manager

Type of Item: x Action Discussion Information

Action Required No Action x Voice Vote Roll Call Vote

RECOMMENDATION:

Staff recommends that the City Council review and adopt Resolution 2018-19 adopting a Conflict of Interest Code.

DISCUSSION:

The Political Reform Act requires every local government agency to review its conflict of interest code biennially. No later than October 1 of each even-numbered year, each agency must submit to the code reviewing body a notice indicating whether or not an amendment is necessary.

The City Clerk reviews the code for the City Council and will recommend changes, if necessary, on even-numbered years.

There have been no substantial changes to the city’s organizational structure, nor has any changes occurred in duties and responsibilities for any positions since the last code was approved. Therefore, no amendments or changes are needed at this time.

FINANCIAL IMPACT:

None August 15, 2018 CITY COUNCIL MEETING 15 ______

RESOLUTION NO. 2018-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FERNDALE ADOPTING A CONFLICT OF INTEREST CODE

WHEREAS: the Political Reform Act, Government Code Section (§) 81000, et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes; and

WHEREAS: The Fair Political Practices Commission (FPPC) has adopted a regulation, 2 Cal. Code of Regs. §18730, which contains the terms of a standard conflict of interest code; and

WHEREAS: The code can be incorporated by reference and may be amended by the FPPC after public notice and hearings to conform to amendments in the Political Reform Act.

NOW, THEREFORE BE IT RESOLVED: The terms of 2 Cal. Code of Regs. §18730 and any amendments to it duly adopted by the FPPC are hereby incorporated by reference, and along with the attached Appendix in which members and employees are designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the City of Ferndale.

BE IT FURTHER RESOLVED: Designated employees shall file their statements with the City of Ferndale which will make the statements available for public inspection and reproduction (G.C. §81008). Statements for all designated employees will be retained by the City Clerk of the City of Ferndale.

BE IT FURTHER RESOLVED: That the City of Ferndale abides by G.C. §87200 requiring Mayors, City Managers, City Attorneys, City Treasurers, Members of City Councils and Planning Commissions, and any other public officials who manage public investments, and to candidates for any of these offices at any election.

PASSED AND ADOPTED by the City Council of the City of Ferndale on August 15, 2018, by the following vote:

Ayes: Noes: Abstain: Absent: ______Don Hindley, Mayor Attest:

______Kristene Hall, City Clerk August 15, 2018 CITY COUNCIL MEETING 16 ______

Appendix A - Resolution 2018-19

Position Disclosure Level

City Manager 1

City Clerk 1

City Treasurer (Finance) 1

City Attorney 1

City Engineer 1

City Planner 1

Building Official / Building Inspector 3 and 5

Mayor 1

City Council persons 1

Planning Commission Chair 1

Planning Commissioners 1

Consultants* See Appendix B

*Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitations:

The City Manager may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to comply fully with the disclosure requirements described in this section. Such determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manger’s determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. August 15, 2018 CITY COUNCIL MEETING 17 ______

Appendix B - Resolution 2018-19 Disclosure Categories

1 Full All interests in real property located within the jurisdiction, as well as Disclosure investments, business positions and sources of income, including gifts, loans and travel payments.

2 Full All investments, business positions and sources of income, including gifts, loans Disclosure and travel payments. (excluding interests in real property)

3 Interests in All interests in real property located in the jurisdiction. Real Property

4 General Note: The first model can be used for an individual who contracts for the entire Contracting agency. The second model is for an individual who has contracting authority for a Categories specific department (e.g. fleet manager). (Two models)

All investments, business positions and income, including gifts, loans and travel payments, from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type utilized by the City of Ferndale.

All investments, business positions and income, including gifts, loans and travel payments, from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type utilized by the specific department of the City of Ferndale.

5 Regulatory, Note: The first model can be used by an agency that licenses or regulates. The Permit or second model can be used by an agency that licenses occupations, as well as Licensing approves classes or curricula to obtain, or maintain an occupation license. Agency (Two models) All investments, business positions and income, including gifts, loans and travel payments, from sources that are subject to the regulatory, permit or licensing authority of, or have an application for a license or permit pending before, the City of Ferndale.

All investments, business positions and income, including gifts, loans and travel payments, from sources that either contract to provide education or training required by the City of Ferndale to qualify or maintain a license, or entities that August 15, 2018 CITY COUNCIL MEETING 18 ______

provide education or training services which courses or curricula are approved by the City of Ferndale.

6 Grant / Note: The first model can be used by an agency that awards monies or grants to Service organizations or individuals. The second model is for an agency that also Providers / approves programs for rehabilitative services. Agencies that Oversee Programs All investments, business positions and income, including gifts, loans and travel (two models) payments, or income from a nonprofit organization, if the source is of the type to receive grants or other monies from or through the City of Ferndale.

All investments, business positions and income, including gifts, loans and travel payments, or income from a nonprofit organization, if the source is of the type to offer or provide consulting, rehabilitative or educational services concerning the prevention, treatment or rehabilitation of persons suffering from alcohol related problems / drug abuse. August 15, 2018 CITY COUNCIL MEETING 19 ______

Section 10 CALL ITEMS These are items pulled from the consent agenda for discussion and a separate motion.

Section 11 PRESENTATION a. Linda Weiss, Recology Inc - Update on Recycling August 15, 2018 CITY COUNCIL MEETING 20 ______

STATE OF RECYCLING

Recology | August 2018 Linda Wise August 15, 2018 CITY COUNCIL MEETING 21 ______OBJECTIVE

1. Discuss market collapse

2. Review national & local impacts

3. Discuss HWMA Recycling Processing Agreement

4. Present policy options

National Sword Impacts | August 2018 2 August 15, 2018 CITY COUNCIL MEETING 22 ______ROLE OF COMMODITIES MARKETS

China’s Share of Global Imports (2016) • Recycling requires an end market 100% China 3% 90% China • Buyers use commodities as raw materials 24% 80% to manufacture new products China China China 70% 55% 55% 51% • Revenue from commodities sales offsets 60% costs of post-collection programs 50% Rest of World 97% (sorting, baling, marketing, shipping) 40% Rest of World 76% 30% • For over 30 years, commodities sales Rest of World Rest of World Rest of World have subsidized collection rates 20% 45% 45% 49% 10%

• China has been a linchpin of the system 0% Iron + Steel Copper Aluminum Paper + Fiber Plastic Source: UN Comtrade

National Sword Impacts | August 2018 3 August 15, 2018 CITY COUNCIL MEETING 23 ______NATIONAL SWORD TIMELINE 2017 - Current

2017 2018 2018 2018 July Jan Mar May

WTO Key Recyclables New Contamination All Imports Notice Banned Limits Halted China announces Complete ban on mixed 0.5% contamination limit on Even allowed recyclables restrictions on imports of paper and scrap plastics other recyclables (3-5% with <0.5% 24 types of recyclables previously OK) contamination turned away at ports Restrictions to be Aggressive enforcement by effective Jan 2018, but Chinese customs officials enforcement uncertain (one banned item  entire shipment rejected) Purpose: encourage domestic recycling and squeeze out small polluting mills National Sword Impacts | August 2018 4 August 15, 2018 CITY COUNCIL MEETING 24 ______IMPACT ON MARKETS

• Recyclables exports from U.S. to China have all but ceased

• Alternative markets in Southeast Asia are oversupplied

• More expensive to ship to these markets than to China

• Long-term price suppression until new capacity comes online

National Sword Impacts | August 2018 5 August 15, 2018 CITY COUNCIL MEETING 25 ______IMPACT ON PRICE

Mixed Paper - Price/Ton - California $120.00 $105.00 $100.00 $90.00 $87.50 $80.00

$60.00

$40.00

$20.00 $30.00 $2.50 $- Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18

Source: RecyclingMarkets.net

National Sword Impacts | August 2018 6 August 15, 2018 CITY COUNCIL MEETING 26 ______VALUE OF BLUE BIN MATERIAL

NON-FERROUS ALUMINUM PLASTIC #1 PLASTIC #2 0% 1% 1% 1% Composition of AprilPLASTIC #3-7 typical blue bin 20182% recyclables stream: MIXED METALS 9%

MIXED PAPER GLASS 39% 15%

41% of blue bin CORRUGATED (OCC) 32% material now has negative value

7 National Sword Impacts | August 2018 7 August 15, 2018 CITY COUNCIL MEETING 27 ______Relative Impact______of Chinese Import Policies on______U.S. States

WA ME

ND MT VT MN NH OR ID NY MA SD WI CT RI MI WY PA IA NJ NE OH MD DE NV IN IL WV CA UT CO VA KS MO KY NC TN AZ OK SC NM AK GA MS AL

TX LA FL

AK

HI

mild noticeable heavy impacts impacts impacts

Source: Cole Rosengren, “What Chinese import policies mean for all 50 states,” Waste Dive (Updated May 11, 2018) 8 August 15, 2018 CITY COUNCIL MEETING 28 ______RECOLOGY VISIT TO ASIA

MAY 2018: Recology reconnaissance trip to China, Vietnam and Taiwan

OBJECTIVES: Understand China’s ban motivations, determine any opportunities for import to China, explore alternative outlets

CONCLUSION: Current state of affairs not temporary. Depressed value and lack of outlets for fiber and plastic commodities will continue Guangzhou Port, China

National Sword Impacts | August 2018 9 August 15, 2018 CITY COUNCIL MEETING 29 ______…BUT NO CLEAR SOLUTION

• Alternative markets flooded and prices low

• Extremely difficult to meet China’s 0.5% contamination standard

• Investments in capital and personnel not cost-effective

• Anti-contamination measures don’t address China’s complete ban on mixed paper and #3-#7 plastics

National Sword Impacts | August 2018 10 August 15, 2018 CITY COUNCIL MEETING 30 ______RECOLOGY RESPONSE

NEW MARKETS: Aggressively pursued new markets in Indonesia, Malaysia, Taiwan, Thailand, Vietnam and domestically

CUSTOMER OUTREACH: Intensified education & outreach to increase quality of blue bin material

ENHANCED PROCESSING: Our MRFs have experimented with slowing sort lines and adding personnel to reduce contamination

CAPITAL INVESTMENT: Explored using optical sorters and robotics to produce cleaner product

National Sword Impacts | August 2018 11 August 15, 2018 CITY COUNCIL MEETING 31 ______FERNDALE RECYCLING PROGRAM

[USA]: Cardboard

[Export]: Mixed Paper

Materials Recovery Curbside Collection Facility (Recology) [Fairfield]: Glass [Samoa]

[Export]: Plastics

[USA and Export]: Metals

National Sword Impacts | August 2018 1 2 August 15, 2018 CITY COUNCIL MEETING 32 ______HUMBOLDT AND HWMA RECYCLING PROCESSING AGREEMENT

• SWOW –current processor

• Member agencies signed MOU to assign flow control to HMWA

• Processing and Marketing RFP

• $88.91/ton passed on into franchise rates

• Annual review and adjustments beginning 2020

National Sword Impacts | August 2018 1 3 August 15, 2018 CITY COUNCIL MEETING 33 ______PROGRAM ALTERNATIVES

• Landfill unmarketable commodities after processing • Problems: hurts diversion, not sustainable

• Keep unmarketable materials out of blue bin • Problems: hurts diversion, can’t turn spigot off/on, squanders investment in “good behavior”

• Stockpile material until market recovers • Problems: paper degrades over time, space constraints, storage costs, unknown timeframe for recovery

National Sword Impacts | August 2018 14 August 15, 2018 CITY COUNCIL MEETING 34 ______KEY PRINCIPLES

Maintain diversion, maximize recycling, and keep recyclables out of landfill

• Align rates to reflect true cost of services

• Transparency around calculations and adjustments

• Recycling similar to composting – an investment worth making

National Sword Impacts | August 2018 15 August 15, 2018 CITY COUNCIL MEETING 35 ______

National Sword Impacts | August 2018 August 15, 2018 CITY COUNCIL MEETING 36 ______

Section 12 PUBLIC HEARING

Section 13 BUSINESS

August 15, 2018 CITY COUNCIL MEETING 37 ______

Meeting Date: August 15, 2018 Agenda Item Number 13.a Agenda Item Title Update on Washington Street Drainage Project

Presented By: Steve Davidson, City Engineer Type of Item: Action x Discussion Information Action Required: x No Action Voice Vote Roll Call Vote

RECOMMENDATION: Review & File

DISCUSSION: The Washington Street drainage project was identified in the Drainage Master Plan Update, dated April 1, 2004, prepared by Spencer Engineering. The Master Plan described this East Side Drainage as Problem Area 2 (on page 19), more specifically described as "The 24-inch culvert that crosses Washington Street is undersized which causes flooding conditions in the area. Storm flows back up at the culvert entrance during heavy precipitation events which cause the drainage channel to overflow across Washington Street and into several yards". The recommended solution is to add to or replace the undersized culvert with new storm drain capacity able to convey the 25-year design flow.

In order to properly design the Washington Street project, the downstream conveyance channel (ditch) needs to be evaluated to confirm that this reach of channel is also adequate to convey the storm event without impacting adjacent downstream properties. Previously, these flows were not directed to the channel, but overflowed on to Washington Street (and adjacent upstream property). It is inadvisable to construct the Washington St storm drain project and adding new drainage to a channel that may not have adequate capacity and may have the unintended effect of simply flooding downstream yards. Another factor to be verified is whether the City has existing drainage easements over the downstream channel.

The City has contracted with Kelly-O'Hern Surveying to perform a topographic survey to be used for designing the Washington Street storm drain addition / replacement and to survey the downstream channel geometrics to be used in determining the existing channel capacity. The City is also researching the existing downstream channel easement situation.

The City Engineer will have more information available at the August 15, 2018 meeting.

FISCAL IMPACT: Unknown at this time August 15, 2018 CITY COUNCIL MEETING 38 ______

Meeting Date: August 15, 2018 Agenda Item Number 13.b Agenda Item Title Schedule a Study Session to Discuss Arlington Avenue Drainage, Short Term Solutions, and Moratoriums Presented By: City Manager Type of Item: X Action Discussion Information Action Required: No Action X Voice Vote Roll Call Vote

RECOMMENDATION:

Schedule a Study Session to Review Arlington Avenue Drainage, Short Term Solutions, and Possible Moratoriums.

DISCUSSION:

Drainage issues on Arlington Avenue were discussed at the July City Council Meeting. Several citizens that live along Arlington Avenue were present and expressed great concerns over the flooding events that occur during the rainy season. The citizens would like to see a fix of these drainage issues before anymore building is allowed and are asking for a possible moratorium on building until the city can analyze the drainage issues. Councilman Brower and Councilman O’Rourke asked that this be placed on the agenda. Councilman Sweeney suggested a study session to allow for more time to discuss.

Staff is suggesting a study session be held to review these items.

FINANCIAL IMPACT: None August 15, 2018 CITY COUNCIL MEETING 39 ______

Meeting Date: August 15, 2018 Agenda Item Number 13.c Agenda Item Title Russ Park Trail Bridge Update

Presented By: City Manager Type of Item: Action Discussion X Information Action Required: X No Action Voice Vote Roll Call Vote

RECOMMENDATION: Review & File

BACKGROUND: In 2016, the City acquired a metal pedestrian bridge from PG&E. The intended location will provide an exclusive route for foot and bicycle traffic between Fireman’s Park and Cleveland Avenue. The bridge will give residents and visitors to Ferndale more direct access to the park. In addition, this bridge will create an alternative to the Berding Street bridge from Fireman’s Park for people heading to Russ Park via Harrison and Eugene Street.

Preparations to initiate this project are in underway. Bill Dexter and Stephen Avis have volunteered to develop a project description, timetable, cost estimates, and a list of required studies and documents needed to evaluate the project.

The information they put together will be reviewed by the City Manager and passed on to the Council. If warranted, the City Manager will create an ad hoc Bridge Resource Committee targeting individuals with specific skills. This committee will include not more than two advisory members from the City Council.

The purpose of this report is to introduce the idea to the City Council and to the community. Future reports will cover a number of steps needed to gather sufficient information for the Council to approve the project and action to authorize construction.

These include, but are not limited to: a. Conduct soil bearing-capacity tests b. Conduct other necessary studies and determine any permitting that will be required c. Evaluate feasibility d. Select and appoint ad hoc committee members e. Kick off a public information/support program/with schematic renderings f. Incorporate the design for a barbeque pit and picnic tables at Fireman’s Park g. Identify specific access routes to Russ Park h. Develop a site plan with topographic data i. Establishes a draft implementation schedule j. Creates a budget and fundraising program k. Develops partnerships with construction folks and grant makers l. Sets a construction schedule with cash-flow forecast

FISCAL IMPACT: Unknown at this time. Grants and general fundraising events will supplement any funds allocated by the Council to conduct feasibility studies. August 15, 2018 CITY COUNCIL MEETING 40 ______

Meeting Date: August 15, 2018 Agenda Item Number 13.d Agenda Item Title: Streets & Roads Resurfacing Update Presented by: City Manager/City Engineer Type of Item: Action X Discussion Information Action Required: X No Action Voice Vote Roll Call Vote

RECOMMENDATION

Review & File

DISCUSSION:

At the July 2018 Council Meeting, Councilman Brower and Councilman O’Rourke agreed that this item be put on the agenda. The discussion included looking into the bidding process the City of Fortuna uses that would allow for a bid for a square footage dollar amount and not on a specific project. Councilman Brower also asked that a cost estimate be given on the resurfacing of Berding Street.

FINANCIAL IMPACT:

Unknown August 15, 2018 CITY COUNCIL MEETING 41 ______

Meeting Date: August 15, 2018 Agenda Item Number 13.e

Agenda Item Title: Approve Letter of Opposition to Bureau of Cannabis Control (BCC) Regarding Proposed Regulations

Presented by: City Manager

Type of Item: x Action Discussion Information

Action Required No Action x Voice Vote Roll Call Vote

RECOMMENDATION:

Authorize a Letter of Opposition concerning the Bureau of Cannabis Control (BCC) Proposed Regulations released in July 2018 removing local jurisdictions’ authority regarding cannabis deliveries.

DISCUSSION:

The League of California Cities has encouraged cities to oppose the BCC Proposed Regulations, which would drastically preempt local control and regulatory authority by authorizing cannabis delivery anywhere in the state regardless of conflicting local regulations or bans. These regulations go against the intent of voters who passed Proposition 64, by removing a local jurisdiction’s ability to allow or ban cannabis deliveries.

The proposed regulations specifically would: 1. Remove a critical part of the local enforcement model of cannabis legalization and open up all communities to having cannabis delivered to their front doors. 2. Sections 5001(c) (11) and 5002(c) (28) would undermine the ability of local agencies to ensure community standards are met by reducing from 60 to 10 days the period to verify if a licensee has obtained necessary local approvals. 3. Create a 10-day clock for cities to respond to the BCC’s inquiry of the validity of either an annual or temporary cannabis license.

ATTACHMENTS: Email from Sara Rounds/League of Cities Draft Letter of Opposition to BCC Proposed Regulations August 15, 2018 CITY COUNCIL MEETING 42 ______August 15, 2018 CITY COUNCIL MEETING 43 ______August 15, 2018 CITY COUNCIL MEETING 44 ______August 15, 2018 CITY COUNCIL MEETING 45 ______

City of Ferndale INCORPORATED 1893 POB 1095; Ferndale CA 95536

August 15, 2018

Lori Ajax, Chief Bureau of Cannabis Control P.O. Box 419106 Rancho Cordova, CA 95741 Submitted via Email: [email protected]

RE: Bureau of Cannabis Control Proposed Regulations – July 2018

Dear Chief Ajax:

The City of Ferndale appreciates the opportunity to comment on the proposed regulations released in July 2018, which seek to codify the emergency regulations implemented in December 2017.

The City of Ferndale strongly objects to two proposed changes that we view are in fundamental conflict with both the language and intent of Proposition 64 and will undermine our city’s ability to effectively regulate cannabis at the local level: • Section 5416(d), would drastically preempt local control and regulatory authority by authorizing cannabis delivery anywhere in the state regardless of conflicting local regulations or bans, and • Sections 5001(c) (11) and 5002(c) (28) would undermine the ability of local agencies to ensure community standards are met by reducing from 60 to 10 days the period to verify if a licensee has obtained necessary local approvals.

The City of Ferndale believes the two proposed regulations go beyond the BCC’s regulatory authority and instead create a new cannabis policy outside of the legislative process. California’s voters were assured that “64 preserves local control”1 and these regulations chip away at the very foundation of local control by allowing cannabis deliveries to every jurisdiction in California.

Ferndale Ordinance 2017-04 was passed to regulate or prohibit the cultivation of marijuana. The intent of the Ordinance is to ensure that marijuana for personal use be consistent with State law, while also preserving the general welfare of all of its citizens. The City exercised its right for local control to ban commercial and medical marijuana deliveries that originate or terminate within the City in order to shield local citizens and agencies from unnecessary harm or burden. The City believes that cultivation, processing, and distribution, such as forced Cannabis deliveries, may result in adverse impacts including offensive odors, illegal sales and distribution of marijuana, trespassing thefts, and robbery attempts. Potential criminal tracking of the deliveries and routes may put both the drivers and the recipients in danger, as well as other commuters and pedestrians.

1 (Ballot Pamp., General Elec. (November 8, 2016) rebuttal to Argument against Prop. 64, p. 99.) August 15, 2018 CITY COUNCIL MEETING 46 ______

The City strongly believes that the two proposed changes infringe on the local land use right provided in Prop 64 and circumvents the City’s authority to regulate or prohibit specific activities that pose potential hazards to its citizens.

For these reasons, the City of Ferndale respectfully opposes these regulations until such time as they are amended to address the concerns listed above. We look forward to continued opportunities to comment on specific regulatory proposals.

Sincerely,

Don Hindley Mayor City of Ferndale cc: Sara Rounds, Regional Public Affairs Manager, League of California Cities, [email protected] Meg Desmond, League of California Cities, [email protected]

August 15, 2018 CITY COUNCIL MEETING 47 ______

Meeting Date: August 15, 2018 Agenda Item Number 13.f Agenda Item Title Resolution 2018-20 Approving Funding for Reception & Dinner for Council and City Manager Attendance at the League of Cities Redwood Division Meeting in Eureka Presented By: Jay Parrish, City Manager Type of Item: x Action Discussion Information Action Required: No Action x Voice Vote Roll Call Vote

RECOMMENDATION: Approve Funding for Reception & Dinner for any Council Member and City Manager Attendance at the League of Cities Redwood Division Meeting in Eureka on August 17, 2018.

BACKGROUND The City of Ferndale is a member of the Redwood Empire Division of the League of Cities. On Friday, August 17, 2018, the City of Eureka will be hosting the General Membership meeting. With the meeting being held in Eureka, it is an excellent opportunity for any Council Member as well as the City Manager to attend and show support for our local division without putting a financial strain on the budget.

FINANCIAL IMPACT: Resolution 2018-20 allows to make funding available, $50.00 per dinner, for any Councilman and City Manager to attend this meeting. Maximum funding would be $300.00 (50.00 X 6).

ATTACHMENTS: 1. Meeting Announcement 2. Resolution 2018-20 August 15, 2018 CITY COUNCIL MEETING 48 ______REDWOOD EMPIRE DIVISION GENERAL MEMBERSHIP MEETING Hosted by the City of Eureka Friday, August 17, 2018

Business Meeting 3:00 p.m. to 5:00 p.m. Eureka City Council Chambers 531 K Street, Eureka

Program: Cultural Arts Programs and Economic Development Rob Holmlund, Director of Development Services for the City of Eureka, will provide an interactive graphic presentation of the relationship between Economic Development and the Arts. In addition to analyzing regional and State economic data, Mr. Holmlund’s presentation will highlight recent efforts enacted by the City of Eureka to promote, enhance, and expand art-related businesses, events, activities, and general aesthetic-improvements to the City. Speaker: Rob Holmlund, Development Services Director, City of Eureka

Reception 5:00 p.m. to 6:00 p.m. Eureka Visitors Center 240 E Street, Eureka

Dinner (menu on next page) 6:00 p.m. – 8 p.m. Sea Grill 316 E Street, Eureka Cost: $50

Please RSVP by August 10th for the Meeting and/or ReceptionDinner & Dinner to ChristineBuffet Tyson Menu, City of Eureka (707) 441-4144 or [email protected] . August 15, 2018 CITY COUNCIL MEETING 49 ______Dinner Menu 6:00 p.m. – 8:00 p.m. Sea Grill 316 E Street, Eureka, CA 95501

Entrees (please select one):

Stuffed Chicken Breast Boneless breast of chicken stuffed with fresh spinach, Monterey Jack and ricotta cheese, served with a cream sauce

Wild Fillet Oven Broiled King salmon filet, topped with a lemon dijon dill beurre blanc

Prime Rib Oven roasted Black Angus prime rib au jus

Vegetarian Pasta Fettuccine tossed with seasonal vegetables in a house made marinara sauce

All selections include a dinner salad, served to the table as a first course, and appropriate sides

Please RSVP by August 10th for the Meeting and/or Reception & Dinner to Christine Tyson, City of Eureka (707) 441-4144 or [email protected] . August 15, 2018 CITY COUNCIL MEETING 50 ______

Lodging

Holiday Inn Express & Suites Eureka 815 W Wabash Ave, Eureka, CA 95501 (707) 269-0682 http://www.hieeureka.com/

Red Lion Hotel Eureka 1929 4th St, Eureka, CA 95501 (707) 445-0844 https://www.redlion.com/eureka

Best Western Plus Humboldt Bay Inn 232 W 5th St, Eureka, CA 95501 (707) 443-2234 https://www.bestwestern.com/eureka

Inn at 2nd & C 139 2nd St, Eureka, CA 95501 (707) 444-3344 https://www.theinnat2ndandc.com/ August 15, 2018 CITY COUNCIL MEETING 51 ______

RESOLUTION NO. 2018-20

A RESOLUTION OF THE CITY OF FERNDALE TO MAKE FUNDING AVAILABLE FOR RECEPTION & DINNER COSTS AT THE REDWOOD EMPIRE DIVISION GENERAL MEMBERSHIP MEETING IN EUREKA

A. WHEREAS, The City of Ferndale is a member of the Redwood Empire Division of League of Cities; and

B. WHEREAS, The City of Eureka will be hosting a General Membership meeting on August 17, 2018; and

C. WHEREAS, it is in the City’s interest to send its Council Members and City Manager to Regional meetings; and

D. WHEREAS, Dinner cost will be incurred by attending this meeting.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ferndale does hereby agree to make funding available for dinner cost incurred by Council Members and City Manager in the amount of $50.00 per attendee at the Redwood Empire Division General Membership Meeting in Eureka on August 17, 2018.

PASSED, APPROVED AND ADOPTED this 15th day of August, 2018 by the following vote:

AYES: NOES: ABSTAIN: ABSENT: ______Don Hindley, Mayor ATTEST:

______Kristene Hall, City Clerk August 15, 2018 CITY COUNCIL MEETING 52 ______

Section 14

CORRESPONDENCE

Correspondence Files are available for review at City Hall during regular business hours, Monday through Thursday, 9am to 4pm.

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Section 15 COMMENTS FROM THE COUNCIL

Section 16 REPORTS

City Manager’s Report Commissions and Committee Reports Minutes from JPAs and Reports August 15, 2018 CITY COUNCIL MEETING 72 ______

City of Ferndale, Humboldt County, California USA

City Manager’s Report for August 15, 2018 City Council Meeting Reporting to July 31, 2018

CITY MANAGER Meetings • Kiwanis meeting 1st Tuesday of the month at 4:30 pm • City Council meeting–July 18th – Regular meeting from 7:00 – 9:30 pm • City Manager meeting-July 19th– 3:00-5:00 pm • Watershed Council Meeting- July 12th-3:00-5:00 pm • Salt River Sub-committee meeting- July 9th- 3:00-5:00 pm • Public Works: Focused on drainage issues and the parking area of the City Parking lot. Developing drainage maintenance schedule for the summer. Numerous conversations between engineer regarding Washington Street drainage and street repair. We have a surveying firm that is surveying the Washington drainage system to develop a plan to improve that area as much as possible to reduce or eliminate flooding. At of the time of this report we had not received the surveying report that we need to analyze our priority improvement plan, but are fairly certain that we will be recommending a new DI on Washington that takes the runoff from the north flow on Washington and brings it across the street to Nichols Way ditch without mixing with the flow coming north from Nichols and Grant Street. • Received a grant from Department of Water Resources Control Board that will concentrate on our wastewater facility. The grant focuses on our lagoon, our inflow and infiltration of ground water into our sewer collection system, how to reduce energy consumption of our UV disinfection system, and looking at the permitting process of our sludge into a certified composting program if cost effective. Lost Coast Engineering has been moving this grant program forward on a number of fronts and has made significant process with our collection system analysis. LCE will give periodic updates to the council on this grant that should take around two years to complete. We hope to use these reports to acquire funding to help us improve our facility as well as reduce costs of running our wastewater facility. We already feel that the grant is having benefits to how we run our plant that should reduce costs of running our UV disinfection system. • We have been working on renewing our NPDES permit with Regional Water quality Control Board. We have put a lot of time into this an changing a few things that have been problematic and we feel that we were successful in convincing our RWQCB representative about these items. The RWQCB will vote our NPDES in October, and our representative Kathleen Goodwin will be here to go over our NPDES on the morning of august 15th. • Weekly training bulletin from ERMAnet. This is an online training program that I have participated in since 2006 as a requirement from our Risk Management Authority. • Monthly evaluations and personnel issues • Daily meetings and discussions and updates with council members regarding current issues and projects. August 15, 2018 CITY COUNCIL MEETING 73 ______

• Conversations with Jill Duffy of HWMA and Linda Wise of Recology regarding a RFP for a Recycling Contract including all the cities in HWMA. This is on March's agenda. All of the cities in HWMA have agreed to move forward with the RFP process. The Mayor and Clerk signed the document on March 14th. It was a long process and, in the end, Recology was awarded the contract, and part of the process will involve a Franchise amendment to many of the Cities in HWMA for Recology's knew role in taking the recycling as part of our overall solid waste removal agreement. One of the changes that has made our negotiations so complex and time consuming has been the proposed cost increases to everyone due to the world global reduction in the price of recyclables. I have asked Recology to give a presentation on this at our meeting. • Conversations with John Driscoll regarding Congressman Huffman and an update on Ferndale issues. • Numerous conversations with Michael Bowen regarding Salt River issues and Francis Creek opportunities. • Numerous conversations with RCD executive director regarding the Salt River Restoration Project. • Regular interaction with Friends of the Library members regarding the ramp at the back entrance of the library and the many improvements in and around our iconic building. • Regular conversations and meetings with County Supervisor Bohn regarding common issues • Downtown improvements continue with oversight and collaboration with property owners. Many conversations with Chamber about how to help businesses and keep our buildings occupied. Numerous discussions with Chamber President Paul Beatie about ideas to enhance tourism and shopping in Ferndale. • Numerous meeting with the Watershed committee and the Sub-committee for funding the maintenance of the watershed. We have spent the last four or five months working on the long-term operating, monitoring and maintenance funding necessary for that important drainage system to continue in a sustainable way after the Salt River Restoration Project is completed. we have made great progress in this effort and have been helped by our county representatives Rex Bohn and Hank Seemann, Michael Bowen of the California Coastal Conservancy, RCD representatives, and the Watershed Council sub-committee. we are hoping to hire a consultant that will help move us through the district structural preliminary evaluation analysis. This in an effort to determine how to fund the future funding needs to sustain the Salt River improvements after the project is finished. • The Council approved an augmentation of our agreement with Planwest to add engineering as a service they provide to the City. Steve Davidson will fill the position of engineer. We have met and gone over many of the drainage, wastewater, street improvement priorities and given background on sub-divisions. We are looking forward to having a very productive relationship with him and to attending to a variety of issues that relate to maintenance on our infrastructure. We have met to go over some of our most pressing infrastructure needs. • Numerous conversations related to mandated ADA improvements at our library. The main issue was the redesign of the back ramp and we have been lucky to have Dennis DelBiaggio of DCI and Brian Ontiveros helping with this and we have been working August 15, 2018 CITY COUNCIL MEETING 74 ______

out a compliant design with the County's consultant architect. We hope to have this approved within the next few weeks and then construction completed sometime this year. Thanks to Friends of the Library, DCI, Ontiveros and Associates, and the County representatives that have helped us work through this state mandated project. At the time of this report we are awaiting the cost estimate from the contractor of the proposed project. Most of the project addresses ADA improvements, but also includes a new sign in front of the library with lighting, and automatic door for the back door, new book drops and a street light in back to name of few of the improvements. This project represents a large commitment by a lot of individuals to make our iconic library even more special to the citizens who use it, but a renewed effort on acknowledging this special building. • Numerous conversations regarding landscaping of the area around the Francis Street bridge and the pocket park and the parking lot with Councilman Sweeney and Michael Stuart. Michael has donated and planted many beautiful plants there. • Numerous conversations with chamber president regarding chamber events and business district and commercial recycling, and study session on TOT financial formula.

CITY CLERK ACTIVITY Meetings • Meetings with City Manager regarding work activities and council agenda. • Attended: o Regular City Council Meeting 07/18/2018 o Regular Planning Commission Meeting 07/11/2018 o Design Review Meetings 07/12/2018 and 07/19/2018 • Wrote agenda items and compiled packets for: o Regular City Council Meeting 07/18/2018 o Regular Planning Commission Meeting 07/11/2018 o Design Review Special Meeting 07/12/2018 o Design Review Special Meeting 07/19/2018 o Began agenda compilation for City Council Meeting 08/15/2018 • Transcribed and drafted meeting minutes and uploaded meeting videos for: o Regular City Council Meeting 07/18/2018 o Regular Planning Commission Meeting 07/11/2018 o Design Review Meetings 07/12/2018 and 07/19/2018 • Posted all meeting agendas and public notices on the City Hall and Post Office bulletin boards, at the library, and on the City Website. • Uploaded meeting packets to City Website. • Met with office staff regarding office issues • Had monthly performance review with City Manager Projects • Worked the front counter and telephones assisting the public, answering questions and information requests. • On-going communications with contract Engineers and City Planner about agenda items before the City Council and Planning Commission Meetings. August 15, 2018 CITY COUNCIL MEETING 75 ______

• Calculated and collected fees for building permits and sent completed applications to Arnie to be checked • Met with Building Inspector to review plans and finals on projects • Sent and received emails daily. • Pick up and distribute City correspondence daily. • Organized and filed paperwork. • Signed and filed resolutions and ordinances of the City Council. • Filed approved City Council, Planning Commission, Drainage and Design Review minutes. • Inventoried and ordered office supplies • Processed checks, created revenue spreadsheet and deposit checks into the bank. • Responded to Public Records Act requests. • Processed Parade and Encroachment Permits • Maintained minute, resolution, ordinance and agenda binders. • Contacted Mayor re: upcoming agenda • Read weekly ERMA bulletins • Updated 2017 Possessory Interests Spreadsheet. • Sent Building Permit reports to Assessors office and Construction Industry Research Board. • Handed out Nomination Packets for upcoming November Election Nomination Period. • Processed Returned Nomination Paperwork for upcoming Election. Transported Election Nomination Papers to Humboldt County Election Office for signature verifications. • Processed Town Hall Rental Applications

FINANCE OFFICER ACTIVITY Tasks: • Meetings with City Manager – re: office issues, financial reports and HR issues • Prepared employee monthly and annual reviews • Processed Payroll/Payroll Tax Payments • Processed Accounts Payable • Processed Accounts Receivables • Reviewed ERMA and HR bulletins • Assisted at the front desk and answered phones • Worked on State Water Board Grant project and processed 2nd reimbursement request • Worked with Jay on the CALRECYCLE grant expenditures filing requirements • Continued fiscal year-end adjustments and required reporting for FYE

CITY PLANNER & ENGINEERING ACTIVITY General Planning Services (Tasks 1-8) Task 1 Response to Public Request for Info - None Task 2 CEQA Compliance - None Task 3 Community Planning • General Planning Task 4 Meetings & Hearings, and Materials: August 15, 2018 CITY COUNCIL MEETING 76 ______

• Planning Commission meeting attendance • Meeting with City Manager Task 5 GIS Mapping - None Task 6 Grant Writing/Funding Coordination - None Task 7 Wastewater Planning/ Env. Analysis - None General Plan Review (Task 8) – None Special Projects - None City Engineer Activity: Engineering Services (Task 9) • Meeting Attendance and Preparation • Staff Reports and Documents • Staffing and Consultation • Design Review Developer Engineering - None Reimbursable Fees: City Planner: • Bradford: Reviewed application for lot merger City Engineer: • B-1825 Russ Building Permit • SD1632 Anderson Grant Ave Subdivision • Cream City Investments – Major Subdivision • Washington St. Drainage Project • Arlington St. Drainage Project

WASTEWATER OPERATIONS • Monthly samples prepared and sent to Labs • Operators perform lab tests daily to measure efficiency of plant • INF totalizer flow results sent to Portland Engineering, PE updated totalizer program. Results inconclusive on correction of INF flows until winter months when flows can be calculated easier • Monthly eSMR (electronic State Monthly Report) prepared and submitted • Sewer backup in main at corner of Main St. and Lewis St. • Monthly no spill verification report completed on CIWQS website • Meeting with Cathy Goodwin about new permit • Move irrigation pipes to East Side of Sousa ranch • Spent 3 days with Trojan rep repairing wipers and ballasts, replaced 128 sleeves and 64 lights • Front gate chain oiled each Monday • Meeting with Paul Gregson and reps regarding grant for pond and composting • Repair broken sprinklers on irrigation pipes • Operators cleaned walls and catwalk • Cleaned the screen at EFF site • Dewatered total of 8 hours • Take bid for jetter to City of Rio Dell, won bid • Weed eating done at old site • Replaced air compressor 2 (cost as much to repair as to replace) • UV channel drained and cleaned August 15, 2018 CITY COUNCIL MEETING 77 ______

• Scrubbed launders in clarifier • Removal of duck weed from clarifiers on weekly basis • Billed RotoRooter, Taylor Enterprises, Steve’s Septic and Wyckoff a total of $7,203 for the month of June. 32 total dumps for total of 63,700 gallons. • Total flow through the plant in July was 4.2 MG. Of that, .7 MG was pumped to the retention pond. Average irrigation discharge was .104 MGD.

PUBLIC WORKS STAFF ACTIVITY • Continued with monthly and daily duties. Such as, cleaning and maintenance of city's bathrooms, mowing of city's owned properties, cleaning of storm drains, keeping streets clear of debris and the maintenance of city's facilities. • Unclogged toilets at Main St bathrooms, • Painted stop bars at Berding and Eugene. • Painted stop bars at Arlington and 5th. • Did maintenance on paint sprayer. • Patched entrance to Senior housing. • Swept in front of school prepping for paint. • Painted stop bars and cross walks curbs at Elementary school. • Met with Mayor, CM, Engineer and Fair grounds manger regarding the drainage issue of Arlington to the Fair grounds. • Replaced tires on the back hoe. • Put old PW pick up back in service for a reserve vehicle for PW. • Meet with CM on daily operations.

POLICE DEPARTMENT • Police Department staff monitored and assisted with the 4th of July Parade. • Chief Smith met with representatives from Ferndale Fire, Fortuna Fire, and Humboldt County Sheriff’s Department regarding Mass Casualty Incident Response. • Chief Smith attended county-wide training manager’s meeting. • Chief Smith attended Kiwanis meetings/functions. • The Police Department continues targeted enforcement of peripheral areas impacting the Ferndale quality of life.

Police Statistics – for July 2018

SERIOUS CRIMES Number Cleared Homicide 0 Rape (Attempted) 0 Robbery 0 Larceny 1 Assault 2 2 Burglary 0 Vehicle Theft 0

TOTAL 3 August 15, 2018 CITY COUNCIL MEETING 78 ______

SECONDARY CRIMES 1 Calls for Service 61 Reports Written 6

Traffic Citations 0 Other Citations 0 Parking Citations 0 Warnings 16 ARRESTS 2 AGENCY ASSISTS 5 TRAFFIC COLLISIONS 1

August 15, 2018 CITY COUNCIL MEETING 79 ______

City of Ferndale, Humboldt County, California USA Design Review Minutes for the 06/28/2018 Agenda - 8:30am meeting

Chair Jeff Farley opened the meeting at 8:30 a.m. Committee Members Paul Gregson, Ellin Beltz, and Kerry Chartkoff were present along with City Clerk Kristene Hall.

Modifications to the Agenda: None

Approval of Previous Minutes: MOTION: to Approve the minutes of the June 07, 2018 Design Review Meeting. (Chartkoff/Beltz) Unanimous

Public Comments: No Comment

828 Main Street: The Design Committee was presented with application to do multiple projects at the residence at 828 Main Street. The applicant presented his projects to the Committee that included a new roof, stairs, front and rear fence, remove and rebuild a lean to, replace kitchen window, and repaint the residence. Committee Member Chartkoff thanked the applicant for a very thorough application. Chair Farley agreed with Chartkoff and added he thought it would be a great project. Chartkoff expressed concern over the color choices for the repainting of the residence. Chartkoff stated the hues may be to dark. Committee Member Beltz agreed with Chartkoff. Committee Member Gregson disagreed stating he thought the colors were very nice and thanked the applicant for the well put together application. The applicant stated that the painting of the residence would not be able to be done until spring of 2019 as this was the earliest they could contract a painter. The applicant informed the committee that the newly built lean-to would only have primer on it until that time. MOTION: to make the required findings of fact listed in Attachment A to APPROVE the Design Review Use Permit Application, subject to the conditions of approval listed in Attachment B, to reroof residence, build fence in front and rear, remodel lean to in rear of residence, replace kitchen window, and replace front stairs as stated in the Design Review Permit Application. Repainting the residence was not approved in this application. (Beltz/Chartkoff) Unanimous

989 Milton Ave: The Design Review Committee was presented with an application to add three (3) new antennas to the rooftop at 989 Milton. A T-Mobile representative was present to answer questions. The representative stated these antennas are meant to increase service in the area. Committee Member Chartkoff asked how big these antennas were. The rep stated the new antennas are approximately 8 ft tall. MOTION: to make the required findings of fact listed in Attachment A to APPROVE the Design Review Use Permit Application, subject to the conditions of approval listed in Attachment B, to install three (3) new antennas to the rooftop. (Beltz/Gregson) Unanimous

Updates: Committee Member Chartkoff updated the committee on Murals. Chartkoff explained the California Law called the California Preservation of Art Act. The Committee members requested murals be put on the agenda at the next regular Design Review Meeting to talk about how to add specifics of murals in the zoning ordinance or the possibility of have a separate ordinance.

August 15, 2018 CITY COUNCIL MEETING 80 ______

Design Review Sign Offs: None

Correspondence: None

Committee Member Comments: None

Meeting adjourned at 9:29 am

Respectfully submitted,

Kristene Hall City Clerk

August 15, 2018 CITY COUNCIL MEETING 81 ______

City of Ferndale, Humboldt County, California USA Design Review Minutes for the 07/12/2018 Agenda - 8:30am meeting

Chair Jeff Farley opened the meeting at 8:40 a.m. Committee Members Marc Daniels and Kerry Chartkoff were present along with City Clerk Kristene Hall.

Modifications to the Agenda: None

Approval of Previous Minutes: MOTION: to Approve the minutes of the June 28, 2018 Design Review Meeting. (Chartkoff/Daniels) Unanimous

Public Comments: No Comment

606 Main Street #1: The Design Committee was presented with application to replace business signage in an existing sign on the front of the building. Committee Members agreed that the signage would look much better than the current signage. The applicant added that he was happy to be doing business here in Ferndale and that it is a beautiful community. MOTION: to make the required findings of fact listed in Attachment A to APPROVE the Design Review Use Permit Application, subject to the conditions of approval listed in Attachment B, to replace signage in in an existing sign in front of the building as stated in the Design Review Permit Application. (Chartkoff/Daniels) Unanimous

Correspondence: No Comments

Committee Member Comments: None

Meeting adjourned at 8:46am

Respectfully submitted,

Kristene Hall City Clerk

August 15, 2018 CITY COUNCIL MEETING 82 ______

City of Ferndale, Humboldt County, California USA Design Review Minutes for the 07/19/2018 Agenda - 8:30am meeting

Chair Jeff Farley opened the meeting at 8:30 a.m. Committee Members Marc Daniels, Ellin Beltz, and Kerry Chartkoff were present along with City Clerk Kristene Hall.

Modifications to the Agenda: None

Approval of Previous Minutes: MOTION: to Approve the minutes of the July 12, 2018 Design Review Meeting. (Chartkoff/Gregson) Unanimous

Public Comments: No Comment

580 Main Street Signage: The Design Committee was presented with application to place a new hanging business sign in the front of the building at 580 Main Street. Staff explained the new sign would be for the visitor’s center which currently has no signage. Committee Member Chartkoff questioned the requirement for an encroachment permit. Chartkoff also stated the concerns with some contradictions in the sign ordinance. After further review of the sign ordinance, some of the contradictions were resolved. Committee Member Gregson suggested the Planning Commission may need to look at the ordinance to review some of the items. Staff will look into this suggestion. MOTION: to make the required findings of fact listed in Attachment A to APPROVE the Design Review Use Permit Application, subject to the conditions of approval listed in Attachment B, to place signage in the front of the building and also place window signage as stated in the Design Review Permit Application. (Gregson/Chartkoff) Unanimous

Correspondence: No Comments

Committee Member Comments: Committee Member Gregson stated that the Solar Guidelines still had not been completed. Committee Member Beltz brought up the suggestion to add a document to the title transfer of property in Ferndale, requiring the new owners to have a mailing address on file so the city can properly have notification of the transfer of property and also have a valid mailing address. Committee Member Gregson also suggested the addition of murals to the sign ordinance.

Meeting adjourned at 9:01 am

Respectfully submitted,

Kristene Hall City Clerk

August 15, 2018 CITY COUNCIL MEETING 83 ______HUMBOLDT COUNTY ASSOCIATION OF GOVERNMENTS Regional Transportation Planning Agency Humboldt County Local Transportation Authority Service Authority for Freeway Emergencies 611 I Street, Suite B Eureka, CA 95501 (707) 444-8208 www.hcaog.net

BOARD OF DIRECTORS MEETING RECORD Regular Meeting June 21, 2018, 4:00 p.m. Eureka City Hall, Council Chambers 531 K Street, Eureka CA 95501 Present: Supervisor Ryan Sundberg, Chair County of Humboldt Mayor Adelene Jones City of Blue Lake Councilmember Susan Ornelas City of Arcata Councilmember Doug Strehl City of Fortuna Councilmember Gordon Johnson City of Rio Dell Councilmember Jack West City of Trinidad

Policy Advisory Committee Members: Kevin Tucker Caltrans District 1 Natalie Arroyo Humboldt Transit Authority

Staff: Marcella Clem Executive Director Oona Smith Senior Planner Christie Smith Executive Assistant

Absent: Mayor Frank Jäger City of Eureka Mayor Don Hindley City of Ferndale

1. Call to Order Chair Ryan Sundberg called the meeting to order at 4:01 p.m. 2. Adjournment of the HCAOG Board; Convening of the Policy Advisory Committee (PAC) The PAC convenes to include representation from Caltrans and the Humboldt Transit Authority Board for items specific to transportation. 3. Public Participation Kent Sawatzky John Webb

4. Approval of the Meeting Record – May 17, 2018 Motion was made (Ornelas/West) to approve the May 17, 2018, meeting record as presented. Motion carried. Abstentions: Jones, Johnson

August 15, 2018 CITY COUNCIL MEETING 84 ______5. Presentation - Last Chance Grade Update Jaime Matteoli, Caltrans Project Manager, presented an update on Last Chance Grade. Public Participation: Kent Sawatzky

6. Consent Calendar Motion was made (Jones/Ornelas) to approve the following consent items: a. FY 2017-18 Regional Surface Transportation Program b. Federal Transit Administration (FTA) Section 5311(f) Intercity Bus Program Applications c. HCAOG Procurement Policies and Procedures Manual Update Motion carried unanimously.

7. Items Removed from Consent Calendar No items were removed from the consent calendar.

8. Action Items a. Transfer and Extension of 101 Corridor Right of Way Funds from Caltrans to the County of Humboldt Marcella Clem provided a report on this item. Jeff Pimentel, Caltrans Project Manager, provided a status on the remaining billboards. Outfront Media did not accept the purchase price offered by Caltrans, but expressed interest in a relocation agreement. Because Caltrans does not have access to the billboard lease agreements, there is nothing more that Caltrans can do related to the billboards. Councilmember Strehl noted that by transferring funds to the County, the issues with the billboards remain. Public Participation: Kent Sawatzky Motion was made (Johnson/Ornelas) to recommend the HCAOG Board approve the transfer and allocation extension of $2 million of right of way funds programmed for billboard removal from Caltrans to the County of Humboldt. Motion carried. Noes: Strehl

b. HCAOG Board Support for Senate Bill 1029: The Great Redwood Trail Support Letter Marcella Clem provided a report on this item. Board members discussed the importance of preserving the right of way and easements. Councilmember Strehl voiced concern regarding the potential this bill has on retaining the rights of the rail. The Board made a minor revision to the draft letter removing the request for a third member jointly appointed by MCOG and HCAOG. Public Participation: Kent Sawatzky Bruce Seivertson, Timber Heritage Association Korina Johnson, Humboldt Trails Council John Webb Motion was made (Ornelas/Jones) to recommend the HCAOG Board approve and send a support letter for Senate Bill 1029: The Great Redwood Trail Act as revised. Motion carried. Noes: Strehl

c. Final Regional Bicycle Plan Update Oona Smith provided a summary of the final revisions to the Regional Bicycle Plan Update. August 15, 2018 CITY COUNCIL MEETING 85 ______Motion was made______(Johnson/West)______to recommend the HCAOG Board approve and adopt the Humboldt Regional Bicycle Plan 2018 Update. Motion carried unanimously.

d. Regional Transit Marketing and Unified Branding Plan (Final) Oona Smith provided a summary of the plan and shared the preferred artwork concept recommended by the HCAOG Committees. It was suggested that staff consider copyrighting the preferred logo concept. Motion was made (West/Johnson) to recommend the HCAOG Board approve the Regional Transit Marketing and Unified Branding Plan. Motion carried unanimously.

e. Reinstatement of the City of Trinidad Transportation Development Act 2% Pedestrian and Bicycle Fund Allocation Marcella Clem reported that Caltrans has agreed to take lead on the implementation of the Little River Trail project and apply for funding in the Active Transportation Program. HCAOG is therefore requesting the City of Trinidad’s 2% Pedestrian and Bicycle allocation be reinstated to assist Caltrans with the application. Motion was made (West/Johnson) to recommend the HCAOG Board adopt Resolution 18-19 amending and restating Resolution 18-16 to reinstate the City of Trinidad’s 2% Pedestrian and Bicycle allocation in the amount of $3,300 to assist Caltrans with the Little River Trail Active Transportation Program application. Motion carried unanimously.

8. Reconvening of the HCAOG Board Motion was made (Jones/Strehl) to reconvene as the HCAOG Board and approve the PAC recommendations. Motion carried unanimously.

10. HCAOG Staff and PAC Member Reports Marcella Clem will report back at the next meeting regarding her contact with the City of Eureka Police Department and Sheriff’s Office regarding the possibility of the agencies conducting patrols along the 101 Corridor from the northern City limits to southern half of the corridor.

The Board requested staff to research and report back to the Board regarding potential membership opportunities on the San Joaquin Valley Rail Committee.

11. Adjournment The meeting adjourned at 6:13 p.m.

Respectfully submitted, Christie Smith, Executive Assistant August 15, 2018 CITY COUNCIL MEETING 86 ______Redwood______Coast______Energy Authority 633 3rd Street, Eureka, CA 95501 Phone: (707) 269-1700 Toll-Free (800) 931-RCEA Fax: (707) 269-1777 E-mail: [email protected] Web: www.redwoodenergy.org

DRAFT BOARD OF DIRECTORS MEETING MINUTES

Humboldt Bay Municipal Water District Office June 18, 2018 828 7th Street, Eureka, CA 95501 Monday, 3:15 p.m.

A regular meeting of the Board of Directors of the Redwood Coast Energy Authority was held on the above date at 3:15 p.m. with Chair Woo presiding. Notice of this meeting was posted on June 14, 2018. PRESENT: Chair Woo, Vice Chair Winkler, Directors Allison, Ricca, Wilson, Sweeney, Miller. ABSENT: Directors Fennell, Glaser. STAFF PRESENT: Business Development & Planning Director Biondini, General Counsel Diamond, Finance and Human Resources Director Edmiston, Power Resources Director Engel, Power Resources Specialist Gwynn, Executive Director Marshall, Account Services Manager Slackerelli, Community Strategies Manager Stephenson.

REPORTS FROM MEMBER ENTITIES

Vice Chair Winkler attended a documentary film screening on companies that clear-cut forests to make wood pellets, which he said differs from local biomass energy production. Mr. Winkler reported having a good dialog with the film producers, Ellen Golla, and Wendy Ring which included supporting the concept of RCEA working on switching people from wood stoves to electric heat pumps.

ORAL COMMUNICATIONS

Chair Woo invited public comment. No one came forward to speak. Chair Woo closed public comment.

CONSENT CALENDAR 3.1 Approve Minutes of May 21, 2018, Board Meeting. 3.2 Approve Disbursements Report. 3.3 Accept Financial Reports.

Chair Woo invited public comment. No one came forward to speak. Chair Woo closed public comment.

M/S: Winkler, Ricca: Approve consent calendar items.

The motion passed on a unanimous voice vote. Ayes: Allison, Miller, Ricca, Sweeney, Wilson, Winkler, Woo. Noes: None. Absent: Fennell, Glaser. Abstentions: None.

OLD BUSINESS 5.1 Offshore Wind Development

August 15, 2018 CITY COUNCIL MEETING 87 RCEA June 18, 2018, Draft Board of Directors Meeting Minutes ______Page 2

Executive Director Marshall summarized the offshore wind project’s next steps and provided an overview of the agreement’s objectives, phases of the project’s life cycle through decommissioning and removal, detailed descriptions of Phase 1, and the lease area for which RCEA proposes to bid. Mr. Marshall described the special purpose vehicle (SPV) to be created during Phase 1, which is typically a limited liability company that owns and operates a project and enables transparent, trackable cost-sharing between project development partners. SPV creation is a standard industry practice for energy development projects. RCEA’s possible roles in the SPV include having some form of owner-equity share or retaining a decision-making role without ownership. RCEA’s role will be evaluated and decided during Phase 1. Mr. Marshall stated the project team has agreed that RCEA should be the Bureau of Ocean Energy Management (BOEM) lease applicant, with the intent that the lease would be transferred to the SPV after acquiring site control. The proposed cooperative agreement supports the lease application. The project partners are narrowing down the final lease area to request, and are reaching out to commercial fishermen, local tribes and environmental groups to get additional input before finalizing the lease area. Director Allison inquired whether the team could renew or expand the lease should the project succeed. Mr. Marshall replied that RCEA or other developers could apply for additional blocks. He added that the demonstration project design was based on current electrical grid capacity although the lease area could accommodate some, but not much, additional production. Expansion would require transmission upgrades such as an undersea cable to the Bay Area or upgrading the existing lines east out of the county. Chair Woo invited public comment. Alison Talbott of PG&E was curious why Principle Power sank and then raised its pilot offshore wind platform prior to be being redeployed to Scotland. Jim Zoellick of the Schatz Energy Research Center asked what would happen if another entity secured the lease, and whether RCEA’s offshore wind project could still move forward. Chair Woo closed public comment.

Executive Director Marshall explained that Principle Power obtained permission to sink its platform for wet storage, which the technology’s durability makes possible and was more cost effective than transport to dry land storage. Mr. Marshall stated it is possible RCEA will not be granted the BOEM lease, in which case the Board might consider purchasing power from the successful bidders. RCEA’s offshore wind request for qualifications generated numerous capable responses. Mr. Marshall stated that, regardless of the lease bid outcome, RCEA’s efforts are helping catalyze offshore wind energy development locally.

M/S: Sweeney, Miller: Authorize staff to submit an outer-continental shelf offshore wind unsolicited lease request to the Bureau of Ocean Energy Management, contingent on final review and approval by RCEA Legal Counsel and the Board Offshore Wind Project Phase 1 Subcommittee.

The motion passed on a unanimous voice vote. Ayes: Allison, Miller, Ricca, Sweeney, Wilson, Winkler, Woo. Noes: None. Absent: Fennell, Glaser. Abstentions: None.

Executive Director Marshall requested the Board establish an ad hoc subcommittee of up to four Directors to provide input and guidance to staff, bring recommendations to the Board, August 15, 2018 CITY COUNCIL MEETING 88 RCEA June 18, 2018, Draft Board of Directors Meeting Minutes ______Page 3

and engage with staff between regular Board meetings. The subcommittee would perform these duties during Phase 1 of the project, after which the subcommittee would be dissolved. Directors Allison and Vice Chair Winkler and Chair Woo expressed interest in serving on the subcommittee. It was suggested that Director Fennell, who served enthusiastically on the Offshore Wind Request for Qualifications Subcommittee, would be an excellent member.

Chair Woo invited public comment. No one came forward to speak. Chair Woo closed public comment.

M/S: Miller, Sweeney: Establish Offshore Wind Project Phase 1 Board Subcommittee comprised of Directors Austin Allison, Estelle Fennell, Vice Chair Michael Winkler and Chair Sheri Woo.

The motion passed on a unanimous voice vote. Ayes: Allison, Miller, Ricca, Sweeney, Wilson, Winkler, Woo. Noes: None. Absent: Fennell, Glaser. Abstentions: None.

Counsel Diamond reported that she is researching if and/or how a public agency can participate in the offshore wind project’s special purpose vehicle (SPV) and the cooperative agreement language provides guidance for and allows latitude in negotiating the SPV. The Board will consider the cooperative agreement at a subsequent meeting and Ms. Diamond requested input or direction from the Board at this stage. Hearing no comment from the Board, Chair Woo stated she looked forward to hearing Counsel Diamond’s recommendations.

Chair Woo invited public comment. No one came forward to speak. Chair Woo closed public comment.

As the Offshore Wind Energy Development Cooperation Agreement was not ready for the Board’s consideration, Executive Director Marshall requested the Board Chair potentially call a special meeting during early July to consider the agreement. He requested the Board Clerk poll the Directors to find a suitable meeting date.

NEW BUSINESS

6.1 Fiscal Year 2018-19 Budget

Executive Director Marshall presented a staff report and presentation on the fiscal year (FY) 2018-2019 budget. The budget does not include Community Choice Energy (CCE) funded programs, which the Board will approve, following Community Advisory Committee review and input, at a subsequent meeting. The Board will be asked to approve budget adjustments based on the programs it selects for funding.

Mr. Marshall provided an overview of the different transaction structures that RCEA engages in for wholesale power procurement. He stated that a Board Finance Subcommittee would be able to study the process in greater depth.

Chair Woo thanked Executive Director Marshall for compiling the budget report and invited public comment.

August 15, 2018 CITY COUNCIL MEETING 89 RCEA June 18, 2018, Draft Board of Directors Meeting Minutes ______Page 4

Dr. Norman Bell, an RCEA Community Advisory Committee member but in this instance speaking as a member of the public, noted that biomass is both the most expensive renewable energy RCEA purchases and the most controversial for the people with which he communicates. He requested the Board keep biomass’ non-renewable aspects and carbon footprint in mind when making power purchase decisions.

Jim Zoellick of the Schatz Energy Research Center inquired whether the 12% increase in revenue and cost was related to wholesale power cost or load increases.

Member of the public Ellen Golla asked how much of wholesale power’s 84% of the budget and 57% of the customer rate is going to biomass. Ms. Golla stated there is a difference between renewable and clean, and that biomass may be renewable but it is not clean.

Chair Woo closed public comment.

Director Miller inquired if RCEA is considering a 100 percent solar option and Director Wilson requested seeing RCEA’s power procurement portfolio’s energy sources by dollar amount and percentage.

Executive Director Marshall responded that the 12% revenue increases were caused by increases in customer enrollment in the Community Choice Energy Program, including the addition of Ferndale at the beginning of 2018, as well as wholesale energy cost changes. He stated he will provide Ms. Golla and the Board additional detail and a pie chart of the power procurement portfolio reflecting percentage and dollar values.

Chair Woo noted that no energy production is free of environmental or public health impacts and even solar arrays can impact birds. Director Wilson added that Bay Area windmills have changed fog patterns and inland areas dry more quickly. He stated that the biomass energy industry will persist locally because it makes sense for Humboldt County to process its own waste locally while also contributing to the economy. Vice Chair Winkler stated he would like to see a program incentivizing homeowners’ switch from wood stoves to electric heat pumps as wood stoves produce uncontrolled pollution in neighborhoods and emit more harmful fine particles than wood waste power plants.

M/S: Wilson, Miller: Adopt RCEA Fiscal Year 2018-19 Budget.

The motion passed on a unanimous voice vote. Ayes: Allison, Miller, Ricca, Sweeney, Wilson, Winkler, Woo. Noes: None. Absent: Fennell, Glaser. Abstentions: None.

Executive Director Marshall requested that the Board establish an ad hoc finance subcommittee of no more than four Directors to study this fiscal year’s budget, assist in setting next year’s budget and provide input on information the Board requires to assess the proposed budget. The subcommittee would disband after next year’s budget is adopted.

Chair Woo, Director Wilson and Vice Chair Winkler volunteered to serve on the subcommittee.

Chair Woo invited public comment. No one came forward to speak. Chair Woo closed public comment. August 15, 2018 CITY COUNCIL MEETING 90 RCEA June 18, 2018, Draft Board of Directors Meeting Minutes ______Page 5

M/S: Miller, Allison: Establish FY18-19 Board Finance Subcommittee comprised of Director Frank Wilson, Vice Chair Michael Winkler and Chair Sheri Woo.

The motion passed on a unanimous voice vote. Ayes: Allison, Miller, Ricca, Sweeney, Wilson, Winkler, Woo. Noes: None. Absent: Fennell, Glaser. Abstentions: None.

COMMUNITY CHOICE ENERGY (CCE) BUSINESS

Chair Woo determined a CCE quorum was not present. Counsel Diamond stated a quorum of the RCEA Board, of which the CCE is part, was present. Since the agenda item required no action of the CCE portion, listening to an informational presentation was allowable.

OLD CCE BUSINESS – None.

NEW CCE BUSINESS

8.1 PG&E and RCEA Joint Rate Comparison Mailer (information only, no action)

Director of Power Resources Engel presented a report on the annual mailer required by the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) to be sent to all electric customers. The postcard compares RCEA and PG&E electricity rates and power supply mixes. Detailed information is available online at PGE.com.

Chair Woo invited public comment.

Member of the public Ellen Golla inquired how the 11% biomass percentage was derived.

Member of the public Norman Bell stated that the cost of biomass is significant.

Alison Talbott of PG&E stated that PG&E still supplies nuclear power through the Diablo Canyon facility and inquired whether the mailer reflects this.

Chair Woo closed public comment.

Mr. Engel stated that in 2017 RCEA had one biomass provider, Humboldt Redwood Company (HRC). In 2018, HRC’s output increased and DG Fairhaven began providing power, increasing local biomass energy to potentially ~20% of RCEA’s power portfolio. Executive Director Marshall added that the format of the information is mandated by the state, including the definition of renewable energy definition and the use of the previous year’s confirmed data.

Mr. Engel stated that RCEA is required to do an emissions report and one is expected later this year from The Energy Authority. While the California Air Resources Board keeps all biomass plant greenhouse gas emissions data, the current state law requires reporting only fossil fuel emissions to the public. Biomass’ fine particulate matter data from burning wood waste can be obtained through the North Coast Unified Air Quality Management District.

August 15, 2018 CITY COUNCIL MEETING 91 RCEA June 18, 2018, Draft Board of Directors Meeting Minutes ______Page 6

END OF COMMUNITY CHOICE ENERGY (CCE) BUSINESS

STAFF REPORTS

9.1 Executive Director • Terra-Gen Monument Ridge Wind Project Executive Director Marshall stated that renewable energy company Terra-Gen, LLC, is planning an approximately 125 MW onshore wind project in the Monument Ridge area to the south of Rio Dell. The company’s goal is to sell electricity generated at the site by 2020. The RCEA community energy program’s launch period goals include investigation of onshore wind options. Terra-Gen requested making a presentation to the Board in August. Mr. Marshall stated that he and Counsel Diamond will evaluate possible negotiation pathways to ensure competitive pricing should RCEA chose to consider buying power from the project.

Director Allison asked whether the offshore and onshore wind projects’ electricity could be managed locally. Mr. Marshall stated that the projects would produce more power than RCEA’s current load and so there would likely be other power-purchasers in addition to RCEA for both projects. Offshore wind’s initial costs will be high, but RCEA can work with other CCAs to purchase the energy to support technology development. He added that European offshore wind is now achieving unsubsidized, competitive pricing, but that the technology is in early development stages in this country.

Chair Woo opened the public comment period.

Alison Talbott of PG&E stated that she has not seen any community outreach for the Terra- Gen project and was concerned for the success of the project given the history of the Bear River Ridge Project previously proposed nearby. She inquired whether the Board had seen any public engagement efforts.

Chair Woo closed the public comment period.

Board members commented they had not heard of any public outreach. Executive Director Marshall stated that they have hired former EPIC Executive Director Natalynne DeLapp as a local community engagement consultant and believes they intend to launch a project website and begin to ramp-up public engagement efforts.

ADJOURNMENT

Chair Woo adjourned the meeting at 5:17 p.m.

Respectfully Submitted,

Lori Taketa Clerk of the Board

August 15, 2018 CITY COUNCIL MEETING 92 ______Humboldt/Del Norte Hazardous Materials Response Authority Regular Meeting Minutes Monday, July 9, 2018

1. Roll Call:

Present at the Humboldt Bay Fire Department Conference Room: Chairperson Ms. Virginia Bass, Humboldt County; Member Mr. Brett Watson, City of Arcata; Member Ms. Sue Strahan, City of Rio Dell.

Present Via Conference Call from the Crescent Fire Department Conference Room: Member Mr. Dale Watson, Del Norte County; Member Fire Chief Bill Gillespie, Crescent City.

Guests Present at the Humboldt Bay Fire Department Conference Room: Mr. Larry Lancaster, Humboldt County Division of Environmental Health.

Guests Present Via Conference Call from the Crescent City Fire Department Conference Room: None.

2. Call to Order:

Chairperson Ms. Virginia Bass called meeting to order at 4:45 p.m.

A. Chairperson Mr. Virginia Bass called for acceptance of the April 9, 2018 Regular Meeting Minutes. The motion was carried by those members present.

3. Public Comments:

The public was invited to address the Board. None present at Crescent City Fire Department Conference Room. None present at Humboldt Bay Fire Department Conference Room.

4. Old Business:

A. Discussion on inviting the Cher-Ae Heights Indian Community of the Trinidad Rancheria to participate in the Humboldt/Del Norte Hazardous Materials Response Joint Powers Authority. Battalion Chief Chris Mitchell and Mr. Glenn Bernald are not present, tabled until next meeting.

B. Discussion on inviting the City of Fortuna to participate in the Humboldt/Del Norte Hazardous Materials Response Joint Powers Authority tabled until next meeting.

August 15, 2018 CITY COUNCIL MEETING 93 ______

Humboldt/Del Norte Hazardous Materials Response Authority July 9, 2018 Regular Meeting Minutes Page 2 of 2

5. New Business:

A. Battalion Chief Chris Mitchell was not present; there are no projected changes to the Proposed Budget at this time as was presented at the April 9, 2018 meeting. Chairperson Virginia Bass called for a motion to accept the Hazardous Materials Response Authority 2018-19 Budget as submitted. Mr. Dale Watson commented that a continuance of a reserve fund for vehicle replacement be kept in place in the budget. The motion to approve was made by Ms. Sue Strahan and seconded by Mr. Brett Watson. Those members present without objection carried the motion.

B. Chairperson Virginia Bass called for a motion to nominate the appointment of Co- Chairperson for the Humboldt/Del Norte Hazardous Materials Response Authority. After a short discussion, Mr. Allison Austin was selected in absentia to assume the duties as Co-Chairperson. The motion to approve was made by Mr. Brett Watson and seconded by Ms. Sue Strahan. The motion was approved by those members present.

6. Adjournment:

Chairperson Ms. Virginia Bass called for adjournment at 5:12 pm. The next regular meeting of the Humboldt/Del Norte Hazardous Materials Response Authority will be at the Humboldt Bay Fire Department Conference Room on Tuesday, October 9, 2018. August 15, 2018 CITY COUNCIL MEETING 94 ______August 15, 2018 CITY COUNCIL MEETING 95 ______August 15, 2018 CITY COUNCIL MEETING 96 ______August 15, 2018 CITY COUNCIL MEETING 97 ______

Section 17 ADJOURN